OTTAWA – Questions are being raised over whether the Harper government will be able resist mounting pressure to finish a massive free-trade deal with the European Union long enough to ensure the agreement is good for Canada.

On Wednesday, a senior EU diplomat encouraged Canadian officials to conclude trade negotiations with Europe by summer.

Roland Schafer, Americas director for the European External Action Service, indicated Canada could have a hard time getting “political attention” from the EU after the United States begins negotiations with Europe later this year.

“It’s more a matter of where Canada wants to position itself with regard to the negotiating process,” Schafer said.

He also indicated an agreement signed after EU-U.S. talks have started will be received with less enthusiasm in Brussels.

“You can conclude the agreement even after (we’ve) started with the U.S.,” Schafer told reporters during a visit to Ottawa. “But it’s maybe another different political message.”

Schafer downplayed suggestions the EU is trying to pressure Canada with a “take it or leave it” proposal.

But he did describe the European negotiators as a “tough crowd” and described the talks as “a real negotiation.”

Canadian and European negotiators are reportedly close to finishing the talks, which were launched in May 2009, with only a few outstanding issues.

Prime Minister Stephen Harper said last week that the government would only sign a deal with the EU “that’s comprehensive and in the best interests of Canada.”

But Harper also acknowledged it “would be an added benefit to us to get this done long before the Americans get such a deal.”

The fact the Conservatives promised to conclude talks by the end of 2012, combined with the government’s failure to finish a deal with any major trading partner, only adds to the pressure.

There is no denying the Harper government is under pressure to conclude negotiations with the Europeans, said Lawrence Herman, an international trade lawyer with Cassels Brock and former trade representative for the federal government.

“The government has put a lot of its efforts on trade policy,” he said. “Should we not be able to do a deal, it will blow a fairly large hole in Canada’s trade policy priorities.”

Herman also said there is a risk the Europeans will lose interest if talks with Canada drag on while those with the U.S. move ahead.

This is what happened when Canada was negotiating with South Korea several years ago; while the U.S. reached an agreement with Korea, Canada’s own negotiations with the Asian nation remain stalled.

But Herman also warned the government against rushing into a deal that it won’t be able to defend in front of Canadians.

Rather, he said, Canada should be trying to turn the tables by reminding Europe that it needs the deal given its economic crisis.

“My wish would be that Canada should be using pressures against the Europeans,” he said.

A Canada-EU agreement would give Canadian companies preferential access to an EU market of 500 million consumers in 27 countries — access U.S. companies wouldn’t have until their own trade deal is finalized.

The deal is also expected to immediately eliminate tariffs on approximately 98 per cent of European goods and lead to what some observers believe could be a three to five per cent drop in the price of consumer goods coming from Europe.

There remain concerns, however, among some provinces and major cities that the deal will drive up the cost of pharmaceutical drugs in the health-care system and erode the autonomy of municipalities when awarding contracts for projects and services.

Both sides are keeping their cards close to their chests as to the remaining stumbling blocks, but it’s believed agricultural issues are at the forefront.

The federal government has been fighting for greater market access into Europe for beef and pork as well as Canadian automobile and parts manufacturers.

In return, trade specialists believe the Harper government will agree to partially open up Canada’s supply-managed dairy sector, which features tariffs of 200 to 300 per cent on imports.

Europe is also demanding greater ability to bid on government construction projects and service contracts within Canada – a key concern to major cities such as Toronto, Mississauga and Hamilton in Ontario, which have asked for exemptions from the deal.

Asked whether those requests were a concern, Schafer said the onus is on the federal government.

“Certainly it’s going to be important for the Canadian side to make sure that they take everyone on board,” he said.